MT4 Candles Charts
A XAUUSD Trading chart is a graphical representation of price movement of a xauusd instrument over a given period of time.
Drawn on a grid & the user is at liberty to select which xauusd chart timeframe they want to trade with. Trader might choose to use hourly charts, daily charts or even 1 minutes chart time-frames.
To draw charts, Three methods are used. Techniques used to draw the charts defines the type of chart.
The three types of charts are: - Candlesticks Charts - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candles charts - Most popular
MetaTrader 4 Line Charts
A single line is drawn from one closing price to the next, forming a continuous line.
This type of chart provides very little information on chart and is therefore not very popular among traders. In fact this type of chart is rarely used by traders.
Line Chart in Gold - This type of chart leaves out important information about price movement. Information such as opening, high & low point of the price which are not represented on the graph.
This makes this type of xauusd line chart to be considered sketchy by technical analysts.
The chart below displays an example of a xauusd line chart.
MetaTrader 4 Bar Charts
Gold Trading Bar Charts - This type of chart shows the opening, closing, the high and the low, for a particular price interval & is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Charts - bar chart has a vertical bar showing the total price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High & low denoted by the highest and lowest point
However, these xauusd bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar charts with ease when trading the market thus making them not very popular among traders.
A Bar chart that is not magnified makes it hard to view the opening and closing price as illustrated by this example:
MT4 Candles Charts
Candlesticks Charts - This is the most widely used type of charts, they resemble candle-sticks, thus their name - candlesticks charts.
Candles charts portrays the opening, closing, the high and low of a particular price interval.
The range between the open price & the close price is called the body of the candle-stick.
XAUUSD candles charts is most popular type of charts among online traders because it is the easiest to analyze when trading the trading market. XAUUSD Trading candle charts also gives a lot of data about the price movement. This makes candles charts the most widely used type of charting in XAUUSD.
Candlesticks Charts
Below is an example of candles charts. To learn and know more about candle-sticks charts, read this topic: Technical Analysis of Japanese Candle Sticks Setups in XAUUSD.
How to Select These Chart Types on MetaTrader 4 Platform
To draw any of the types of charts on the MetaTrader 4 Software a trader can use the buttons below found on this MT4 software.
Drawing Charts on MT4
- To Choose a Bar Chart Click the Bar Button Key
- To Select a Candles Chart Click the Candlestick Button
- To Choose a Line Charts - Click the Line Button
What is a Forex Trading Plan? - Written Forex Trading Plan Template
Alternatives: Automated EA Trading Robots or Copy Paste Trading Signals
